A business advocacy group believes Waterloo, Kitchener, Cambridge, Guelph and Brantford could be hit particularly hard by U.S. tariffs.
The Canadian Chamber of Commerce released a report detailing which Canadian cities they believe could be most vulnerable to protectionist trade policies from U.S. President Donald Trump.
Cities were ranked based on how many goods they export to the U.S. as their key export market.
In a ranking of the 41 most vulnerable cities, Kitchener-Cambridge-Waterloo came in at number four.
“We have a fairly diverse economy. We punch way above our weight in the region and that is high tech, but it’s also advanced manufacturing,” said Region of Waterloo Chair Karen Redman.
The agriculture sector is also a major contributor locally with worldwide exports.
So, when Redman saw the rankings she said: “I would have to say that it’s no surprise.”
It’s largely why a motion she tabled to explore ways to mitigate risks the region faces received unanimous support by council earlier this week.
Redman also urged the provincial and federal governments to help protect these sectors.
“I think any time you’re innovative there is a risk,” she said. “I think that we have shock absorbers to help deal with that risk, but as we go forward, we have to look for opportunities.”
They’ll have to think fast too, knowing there is a lot at stake.
The Region of Waterloo exported nearly $18 million in goods to the U.S. in 2023, or 92 per cent of its local exports, according to the report.
Exports to the U.S. also accounted for 46.5 per cent of the region’s economy, as measured by its gross domestic product.
Brantford was listed as number five in the report’s rankings, while Guelph was sixth in terms of vulnerability.
“Our modelling estimates that automotive and parts manufacturing would be the second most negatively impacted sector by U.S. tariffs. Therefore, it’s no surprise to see several cities in Southwestern Ontario occupying the 3rd to 6th spots on the list,” the report said.
Pascal Chan, the vice president of strategic policy and supply chains for the chamber, noted that southwestern Ontario is very much at the centre of these key sectors.
While the report doesn’t outline how many jobs may be lost due to the impending tariffs, the chamber said having the information could help companies navigate what may lie ahead.
“It also provides the data and the evidence that you need to make the arguments for continued trade between Canada and the U.S. and to grow that relationship, rather than tear everything apart and just do damage to families on both sides of the border,” Chan said.
